By Yoshiyuki Osada OSAKA Japan (Reuters) – Japanese manufacturers, flush with cash but loath to spend it at home since the global financial crisis, are finally shedding their deflationary mindset and splashing out on the new plant and equipment crucial to sustaining a nascent economic recovery. Creating a virtuous cycle of expansion that boosts wages and in turn lifts consumer spending is central to Prime Minister Shinzo Abes strategy to unshackle the Japanese economy after two decades of stagnation. A year-and-a-half after the launch of Abenomics – a mix of fiscal and monetary stimulus and structural reforms – economic data, which tends to lag actual spending, has in recent months begun to show a broad-based pick-up in capital expenditure. Until now, we just couldnt take the plunge, said Takashi Nanki, director and general manager at Shima Seiki Mfg Ltd , whose knitting machines make sweaters and knitwear for the likes of Gucci, Prada and Benetton [EDZINB.UL].
Hope for Abe’s ‘virtuous cycle’ as Japan Inc spends on technology
08
Jul
2014
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